TVO Market Barometer 4/13/15

TVO MB 4-13-15b

Across the indices today, key levels were penetrated and quickly sold off and in the distance one can almost hear the sound of the technical bears roaring in triumph. The sound was quite faint from a volume perspective and ended up leaving a wound that was really only skin deep, as volume fell on the S&P 500 in the decline. The bears will have to sink their teeth in a little deeper if they want this to be more than just another classic Monday morning flush. The drop did give us an excellent opportunity to average down in our long position, which is a tactic we use that’s scorned by many (another is that we don’t use stops). Over protecting yourself from too many losses will also prevent you from many missed gains in the long run… So if you really don’t want to lose money in the market, these are the only 2 rules you need: Make your own rules and then live by them. -MD

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